When the relative price of steak falls, we would expect people to buy a greater quantity of steak.

Question

Quizplus · Accepted Answer

When the relative price of steak falls, it becomes relatively cheaper compared to other goods. As a result, people would prefer to buy more of it, leading to an increase in the quantity demanded for steak. This is due to the fact that the lower price makes it more affordable and attractive for consumers. Therefore, the statement is true.

When the Relative Price of Steak Falls, We Would Expect